Building and completing the rehabilitation procedure is an independent procedure carried out before the bankruptcy procedure.

Vice Chairman of the National Assembly Vu Hong Thanh chaired the meeting. Photo: Pham Thang

Removing bottlenecks in resolving bankruptcy cases

The draft Bankruptcy Law (amended) was presented by Chief Justice of the Supreme People's Court Le Minh Tri. Accordingly, the promulgation of the draft Law aims to amend and supplement regulations on bankruptcy settlement; create a legal corridor to remove difficulties and obstacles, unblock resources, promote the ability to recover business operations, protect the rights and legitimate interests of the parties, in accordance with international practices and Vietnam's conditions, contributing to bringing the country firmly into the "new era - the era of development and prosperity".

Vice Chairman of the National Assembly Vu Hong Thanh chaired the meeting. Photo: Quang Khanh

The Draft Law consists of 89 articles and 8 chapters, of which 62 articles are added and 5 articles are kept unchanged.

The Draft Law inherits the relevant provisions of the 2014 Bankruptcy Law; at the same time, amends and supplements provisions that have problems and shortcomings in practice, selectively absorbs international experience to remove bottlenecks in resolving bankruptcy cases, meets the requirements of unlocking resources, supporting production and business, promoting the economy, building a healthy business environment, and enhancing national competitiveness.

Chief Justice of the Supreme People's Court Le Minh Tri presents the Draft Law on Bankruptcy (amended). Photo: Pham Thang

Specifically, supplementing regulations on the scope of regulation on the order and procedures for handling recovery cases, the duties and powers of the person conducting recovery and bankruptcy procedures; the rights and obligations of the participants in recovery and bankruptcy procedures.

Supplementing regulations on guaranteeing bankruptcy costs in cases where the applicant does not have to pay the advance payment for bankruptcy costs of enterprises and cooperatives that have no money or assets to pay, or enterprises and cooperatives that have assets but cannot sell them to pay the State budget as guarantee. Amending and supplementing regulations on negotiation and conciliation in the direction of encouraging participants in rehabilitation and bankruptcy procedures to conduct negotiation and conciliation during the process of resolving rehabilitation and bankruptcy cases...

There are other support policies for businesses and cooperatives facing difficulties.

The review report was presented by Chairman of the Economic and Financial Committee Phan Van Mai. Accordingly, the Economic and Financial Committee believes that the draft Law dossier has basically met the requirements and is qualified to be submitted to the National Assembly for consideration and comments.

Chairman of the Economic and Financial Committee Phan Van Mai presents the Verification Report. Photo: Pham Thang

However, it is recommended that the Government direct relevant agencies to closely coordinate with the Supreme People's Court and the Agency in charge of the review to provide timely comments during the process of reviewing and revising the draft Law and completing the Law project dossier, especially for the contents assigned to the Government to specify in detail in the draft Law to ensure feasibility and the best quality before submitting it to the National Assembly for consideration and approval at the 10th Session.

Regarding the scope of regulation, the majority of Committee members agreed with expanding the scope of regulation of the draft Law in the direction of building and perfecting the rehabilitation procedure as an independent procedure carried out before the bankruptcy procedure.

However, some opinions say that separating the rehabilitation procedure into an independent procedure to be carried out before the bankruptcy procedure is not suitable for practice, not feasible, and may lead to the abuse of State support policies during the rehabilitation phase, prolonging the time to resolve the bankruptcy case. Therefore, it is proposed to stipulate that the rehabilitation procedure is a step in the process of carrying out bankruptcy procedures.

1(1).jpg — Delegates attending the meeting. Photo: Quang Khanh

Regarding the basic principles and policies of the State, the Committee found that, based on the opinions of the National Assembly Standing Committee and the preliminary examination opinions, the draft Law has been accepted in the direction that the State has policies to support tax, credit, interest rates, finance, land and other support measures for enterprises and cooperatives facing difficulties in production and business.

Based on the State's ability to balance resources in each period, the Government builds specific mechanisms and policies to support enterprises and cooperatives. This regulation aims to restructure, restore or terminate production and business activities of enterprises and cooperatives in an orderly manner, contributing to improving the investment and business environment and making the economy healthier.

2(1).jpg — National Assembly deputies attending the meeting. Photo: Quang Khanh

Regarding the concept of enterprises and cooperatives at risk of insolvency, some opinions say that 6 months is a reasonable period of time for enterprises and cooperatives to determine whether they have the funds to pay their debts due. Before falling into insolvency, enterprises and cooperatives must self-identify their difficult situation and have time to proactively balance their finances before submitting a request to the Court to apply rehabilitation or bankruptcy procedures.

However, some other opinions suggested studying the State Bank's regulations on debt classification for loans to adjust the concept of insolvency in the draft Law to be consistent and consistent...

Source: https://daibieunhandan.vn/xay-dung-hoan-thien-thu-tuc-phuc-hoi-la-thu-tuc-doc-lap-duoc-thuc-hien-truoc-thu-tuc-pha-san-10392530.html